5 Ways To Invest In Multifamily Real Estate This Year

5 Ways To Invest In Multifamily Real Estate This Year

How will you invest in multifamily real estate this year?

Multifamily real estate is going to be in big demand this year. It’s one of the few investments that is expected to hold and grow in value, deliver appealing yields, provide tax benefits, and throw off cash flow. How will you do it?

1. Buy An Apartment Building To Flip Or Hold For Cash Flow

There are plenty of apartment buildings in America. They range from small five unit properties to hundreds of units spread across multiple buildings in entire complexes.

You can buy recently renovated ones which already have a track record of performance for cash flow. Or you can acquire dated and distressed multifamily properties and rehab them yourself. Then hold and manage them for cash flow or flip them for lump sums of cash to other investors.

2. Build Your Own Multifamily Inventory

Where inventory is lean or too competitive and expensive, you can always develop your own. Find the land, complete the plans, get permits, and hire a builder to finish it. Then keep it or resell it. It’s a longer process, but if the market changes, you can also always convert it into condos and cash out.

3. Invest In Commercial Mortgage Debt

If hands-on property management or learning the construction business isn’t for you, then consider becoming a note investor or lender. Invest in commercial mortgage debt backed exclusively by multifamily properties. Bid on existing notes and note pools, or originate your own loan notes which can be held or sold.

4. House Hack

This may also be a great year to buy your first house. If you don’t own one yet, then purchasing a small 2-4 unit property can be a great way to hack your way into homeownership and real estate investing. Live in one unit. Rent the others out. Then you can live for free, and maybe even make a little extra cash too.

5. Invest Through Real Estate Syndications

Syndications allow you to partner up with others and buy the best properties, even if you don’t have all the cash to buy an entire complex yourself or want to spread your capital around. This also partners you with experienced operators who will handle everything while you sit back and share in the profits. Let them do all the hard work of finding and negotiating the best deals, leasing and managing tenants and maintenance, and get on with what you love doing most in life.